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Soon a world wide crash?

Posted by Richard640 @ 22:30 on December 1, 2022  

https://wallstreetonparade.com/2022/12/credit-default-swaps-blow-out-on-credit-suisse-as-its-stock-price-hits-an-all-time-low-of-2-82/

 

ANOTHER LEHMAN?

 

Credit Default Swaps Blow Out on Credit Suisse as its Stock Price Hits an All-Time Low of $2.82

By Pam Martens and Russ Martens: December 1, 2022 ~

Credit Suisse That $4 billion capital raise that was supposed to shore up confidence in global banking behemoth Credit Suisse turns out to have been too little, too late. Yesterday, 5-year Credit Default Swaps (CDS) on Credit Suisse blew out to 446 basis points. That’s up from 55 basis points in January and more than five times where CDS on its peer Swiss bank, UBS, are trading.

The price of a Credit Default Swap reflects the cost of insuring oneself against a debt default by the bank. Who might be desperate to buy protection against a default by Credit Suisse and driving up the cost of that protection? The mega banks on Wall Street that are counterparties to its derivative trades come to mind, as well as hedge fund speculators.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.